The British Pound reversed sharply lower against the Japanese Yen, marking the largest daily decline in close to four weeks. Prices are testing support at 170.97, the 23.6% Fibonacci expansion, with a break below that aiming for the 38.2% level at 169.37. Near-term resistance is in the 173.13-56 area, marked by the March 7 and April 3 swing highs.

Risk/reward considerations argue against entering short with prices trading in close proximity to relevant support. On the other hand, taking up the long side looks premature absent a defined bullish reversal signal. With that in mind, we will remain flat for now.